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Alibaba vs Amazon: The Competition Heats Up

Katrina at Rack Solutions May 31, 2016
Alibaba vs Amazon

Alibaba vs Amazon

Alibaba vs Amazon: Alibaba’s New Partnership

Chinese e-commerce company Alibaba Group is continuing to expand its footprint in the technology world. A recent Bloomberg article says the giant company has teamed up with Softbank Group to start a new cloud computer service that will target customers in Japan.

Chinese e-commerce company Alibaba Group is continuing to expand its footprint in the technology world. A recent Bloomberg article says the giant company has teamed up with Softbank Group to start a new cloud computer service that will target customers in Japan.

Alibaba vs Amazon: Alibaba’s Plans

They plan to open a data center in Japan, and will be known as SB Cloud Corp. Customers will range from global organizations to startups, and they will be competing with Amazon.com. Data storage and processing will be the primary services offered.

Softbank is the company’s largest stockholder, reports said. Softbank is also Japan’s third largest phone business, and will own 60 percent of the new venture, the Bloomberg report said.

Alibaba vs Amazon: Alibaba’s Growth

Alibaba has been growing fast. Last month, a similar partnership with SK Holdings, of South Korea, was announced. The company has earlier added companies and deals similar to this one in other parts of China and southeast Asia. In April, company officials said they were working with a German company. It currently has data centers in Singapore and the United States and plans to open another one in Europe this year.

In its first quarter report, it tripled its total revenues, to show how fast it is growing in the electronics world. Its cloud division increased 175 percent. A company official said it now has half a million customers, and the company says it is nearing a place where it will start to break even. It is trying to be a serious Challenger to companies like Amazon in this area.

Alibaba vs Amazon: Alibaba’s Cloud Service & Data Centers

Their cloud service has risen to meet the need of the computer power – which is huge – needed to handle millions of online shopping customers. In China, it has a home field advantage and is tapping into a vast Chinese market which is just now hooking into the cloud world.

Alibaba is thought to be the cloud leader in China because of its home field advantage that includes favorable government treatment.

The Alibaba company tripled its revenue in the first quarter of the year. The new business could account for $1 billion Yuan in business by 2018.

The company now has two data centers in Silicon Valley in the United States, where most of the technology has been developed. They were inviting customers to sign up as of October of last year.

Alibaba vs Amazon: Alibaba in the US

Now that it has moved into the United States, it can offer real competition to companies like Amazon and Google. It now has four centers in the United States but has not said where they are. They are working with some American companies such as Mesophere, Bankware Global, and Panzura.

Alibaba now has nine cloud data centers around the world. They are still smaller than Amazon, but have more centers than Google, the Bloomberg report said. Having more centers makes it more attractive to companies that do business around the world.

About Alibaba

Alibaba is a Chinese e-commerce company, like Amazon, that provides sales services through web portals, This can include business to business, customer to customer and sales of products to the general public. It was started in 1999, and is still primarily in China, but expanding around the world rapidly.

About the Author

Katrina is an IT industry leader who comes up with innovative ideas and custom solutions in her daily role as a product specialist at Rack Solutions.

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